Well, so happens the Braniff building is on next week's council agenda -- and there are very definite plans for the parcel that also includes some of the old Legend Airlines terminal next door. Says the agenda item, Randall Reed -- yes, that Randall Reed -- intends to take the 26-acre property on a 40-year lease. About half of it will be serve as aviation hangars and a fuel farm; while the other half will be turned into "an automobile dealership consisting of a new car showroom, body shop, service center and parking," per the agenda item. Lincolns, to be precise.

According to the city, Reed will sink $21 million into the both facilities in coming years, and that his combined leases will generate an estimated $926,238 in total revenue for the city. "Approval of this item," says the agenda item, "will convert a non-revenue producing asset into a revenue producing amenity to the City."

The agenda item says the Braniff building should be down gone by January 2014, if and when the Texas Historic Commission signs off on the demolition. (That doc's due by year's end.) And before the deal's consummated, the Federal Aviation Administration has to give its blessings as well.

Mark Duebner, Dallas’ director of aviation, says this landed on next week's agenda because "we got the terms of the deal worked out, and they're anxious for us to get going. They asked for us to put it on the council agenda as quickly as we could." And, he says, he's fairly certain the THC will OK the demolition: "Given the investigation and what we submitted to the Texas Historical Commission, we think we'll have to take necessary steps to preserve the history of the building but don't anticipate we'll have to leave the building."

I asked Duebner how yet another car dealership near Love Field fits into the so-called Good Neighbor Plan, which is intended to upend the city-owned airport's long-standing reputation as "the worst house on the block," as he put it last month.

Duebner insists that during recent public meetings, folks living around the airport don't want "three-story office buildings on Lemmon." Rather, he says, "they wanted us to focus more on pedestrian access, which we can incorporate into this, and they want better landscaping. They want lower developments and better setbacks. They don't want big, garish signs everywhere. We think all of this can be incorporated into the dealership facing Lemmon."

Fact is, it doesn't sound like that talk of restaurants and retail on the Love Field side of Lemmon's gaining much traction. First Assistant City Manager A. C. Gonzalez says separately today that it's merely a "vision that's being talked about, one of the possibilities out there," but nothing concrete -- far from, as a matter of fact.

"They're going through the whole process to see what the best uses are for the airport and the adjacent neighborhood and see how it can be better as defined by the community out there," Gonzalez says. "And it gives you a lot more options when it's just pavement."

Below, the terms of the deal:

SUBJECTAuthorize (1) a forty-year lease agreement of approximately 635,538 square feet of land for aviation use development with a capital commitment of $9,000,000 to be expended within 24 months from the effective date of the lease with an additional $4,000,000 to be expended within 10 years; and (2) a forty-year lease agreement of approximately 414,600 square feet of land for commercial development with a total capital commitment of $8,000,000 to be expended within 24 months from the effective date of the lease with Reed Enterprises Investment Holdings, LP at Dallas Love Field - Estimated Annual Revenue: $926,238

BACKGROUNDThe Aviation Department is currently in the process of demolishing the existing improvements on a 26 acre tract of land at Dallas Love Field commonly referred to as the former Dalfort Aerospace facility lease. Upon completion of demolition, estimated to be January 2014, Reed Enterprises Investment Holdings, LP has offered to lease and develop the property under two separate lease agreements. Below are the general terms and conditions of both leases.

Aviation Lease

The aviation lease will have a term of forty years and consist of approximately 635,538 square feet of land having a lease rate based on the current prevailing annual rental rate at Dallas Love Field of $.40 per square foot for unimproved land and $.65 per square foot for improved land. Total estimated annual revenue under the aviation lease is $404,429 (600,858 sq. ft. improved land and 34,680 sq. ft. unimproved land).

Payment of rent and the lease term shall commence fourteen months from the effective date of the lease. Rent will escalate every three years by the greater of: (1) the percentage increase in the Consumer Price Index over the previous 3-year period, (2) the prevailing rental rate for similar premises at the airport, or (3) 6%, provided, no single escalation shall exceed 12% from the previous 3-year period. Commencing the 31st year of the lease, the City will begin collecting rent on the improvements constructed by lessee at the then prevailing rental rates for such improvements at Dallas Love Field. The lease will have an initial capital commitment of $9,000,000 to be expended within 24 months from the effective date of the lease for the construction of aviation hangars and a fuel farm and an additional capital commitment of $4,000,000 to be expended within 10 years from the effective date of the lease. Total capital commitment in the aviation lease is $13,000,000. Title to all newly constructed improvements will vest in the City upon completion of construction.

Commercial Lease

The commercial lease will consist of approximately 414,600 square feet of land having an annual ground lease rate based on appraised market value supported by a broker's opinion of value of $.75 per square foot for unimproved and improved land and $240,000 annual rent for the existing parking garage. Total estimated annual revenue under the commercial lease is $521,809 which is based on $.75 per square foot, less 38,854 square feet footprint of the parking garage, plus the parking garage revenue. Payment of rent and the lease term shall commence fourteen months from the effective date of the lease. Rent will escalate every three years by the percentage increase in the Consumer Price Index over the previous 3-year period with a provision that the rent will not be reduced if a negative Consumer Price Index calculation is recorded, or a maximum of two percent (2%) per year, whichever is lesser, provided, any Consumer Price Index increase that exceeds the maximum two percent (2%) per year for any given 3-year period shall be paid by lessee by spreading the excess amount evenly over the following five year term of the lease. Beginning the 20th year of the lease, the City will receive percentage rental equal to the excess, if any, of: (1) 10% of gross rentals collected by lessee under subleases of the property over (2) the amount of base rental otherwise payable by lessee for the same period excluding automotive use subleases when the sublease is an affiliate or subsidiary of lessee. The lease will have a total capital commitment of $8,000,000 to be expended within 24 months from the effective date of the lease. The lessee proposes to develop the site with an automobile dealership consisting of a new car showroom, body shop, service center and parking.

Upon completion of construction the lessee will retain ownership of the permanent improvements through the remainder of the lease term, which will be subject to ad valorem property taxes. At the expiration of the lease term, the City retains the right to require the lessee, at lessee’s expense, to demolish the improvements or leave them in place. The lessee shall also be granted a Right of First Refusal to lease the two office buildings and adjacent land currently leased to Signature Flight Support Corporation if/when the property becomes available to lease.

The City remains responsible for environmental clean-up and remediation of environmental contaminates, not caused by lessee, after the City’s initial demolition of the structural improvements. If, during lessee’s construction of new improvements on the leased premises, environmental contaminates requiring remediation are found on the site which the City is responsible, the lessee may remediate the site to acceptable levels and the City shall reimburse lessee the cost of such remediation through rent abatements in an amount not to exceed one year’s rent under both leases.

During the 36th year of the primary term of both leases, the City and lessee agree to enter negotiations regarding possible extension of the term of the Leases for additional periods of ten (10) years each. If no agreement on an acceptable extension of the primary term is reached by the commencement of the 37th year of the primary term, lessee shall have the option to terminate the leases before the end of the primary term with written notice to the Director; provided, however, such written notice is given to theDirector not less than one hundred and eighty (180) days prior to lease termination. If no agreement to extend the term of the leases is reached and Lessee does not terminate the leases before the end of the primary terms, the lessee, shall retain a right of first refusal during the remainder of the primary term to match or exceed any confirmed third party offer received and acceptable by the City to lease the leased premises commencing after the end of the primary term.

The Texas Historical Commission is reviewing an application to designate the property a historical site. The review process is expected to be completed by the end of this year. In the event the Texas Historical Commission designates the leased premises a historical site, both the Aviation Lease and the Commercial Lease shall be rendered null and void as of the date of such designation. The Aviation Lease and the Commercial Lease are also subject to approval by the Federal Aviation Administration.

Total annual revenue is $926,238 and total capital commitment under both leases is $21,000,000. Approval of this item will convert a non-revenue producing asset into a revenue producing amenity to the City.